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Not usually unless a Doctor is called and offers advice that they are then responsible for. This means they are then at work as they drive to work and can claim a deduction for this travel. Travel between places of work and to and from educational facilities is deductible.
A locum who is called at very short notice for unscheduled shifts may be able to claim travel and accommodation as long as there is no regular shift arranged.
The ATO allows certain benefits if working away from usual place of work. In addition some allowances for food which appear on a group certificate as allowance are tax free if receipts are kept. In most cases this is relevant for overtime work only.
No, some allow credit card payments and in some cases interstate, wedding costs are deductible so check with individual pay offices.
FBT is a tax that is paid on a fringe benefit such as packaging a car when some of the car is not used for business use. If the statutory method is used then the more total kilometres travelled the better as the level of tax levied is reduced. If the car travels less than 10,000 kilometres a year then significant FBT will be levied. Another method to calculate FBT is the actual business percentage. It is important to speak with a Financial Planner regaring FBT as this is a very complicated area.
Yes it is but might have been claimed as a 48.5% tax deduction and the Capital Gain may be concessionally taxed and discounted by 50% if the asset is held for greater than a year.
If you are a resident for tax purposes then your overseas income is included as foreign exempt earned income and the overseas tax is allowed as a credit. In essence all global income is assumed to have earned in Australia.
The ATO has spent the last year considering appropriate profits for service Companies. After much industry consultation, the ATO has issued a guide book that explains service entity arrangements which can be supplied on request.
In some cases the ATO may not allow a practitioner to pass income through certain types of entities if the sole purpose is to reduce taxation. There are a number of tests that must be passed before income may be passed through these entities.
The ATO has issued additional tests for Primary production which include the land being worth a certain amount, minimum turnover per year and equipment purchase limits being met.
This is a complex area of tax law and depends on whether the intention is to build a property that will derive an income. If the land has purely been purchased for growth purposes then the costs may form part of the cost base.
When an Australian Company pays tax at the Company tax rate of 30% the investor receives the full pre tax dividend as an income in their tax return and is taxed at their marginal tax rate. To stop double tax occurring the investor will receive the tax paid by the Company as a tax credit or fully franked dividend. Not all Companies pay fully franked dividends. If an investor is on the 30% tax rate then in effect they are receiving the dividend with no need to pay additional tax.
A home purchaser is entitled to live in their property for a reasonable period of time before moving out and renting out the property. If the owner has no other principal places of residence nominated then this rental property can continue to be negatively geared whilst receiving Capital Gains Tax exemptions for up to 6 years. This is subject to whether the owner moves back in again.
If the intention is to build a property to live in then the owner is entitled to spend 4 years building their home. If the home is finished a significant time after the 4 years expires then there may be some CGT levied on a pro rate basis.
If a predominantly self employed person contributes to Super and intends to claim a tax deduction this may not be deductible if more than 10% of income as a % of total pre expense income has been received from an employer.
Subject to legislative approval, Tax on Super benefits has been removed in most cases, the age based maximum deductible contribution limits have been removed and replaced with a flat $50,000 pa. In addition reasonable benefits limits have been removed at retirement. These are just some of the changes, and it should be noted that there is a transition period of 6 years for some of the changes depending on the tax payers age.
As Super can be accessed earlier and contributions made later , an employee may choose to salary sacrifice tax effectively reducing tax and then drawing an income from a tax effective pension whilst still working. This is age based.
Yes, in the event that the tax payer is self employed and the loan is taken out to pay tax to assist the tax payer in cash flow it is a deductible cost if incurred in gaining assessable income. For PAYG employees this is not deductible.
As long as the loan is not capitalized and interest is paid on a regular basis then a tax payer is entitled to borrow money to pay for expenses to the business. The ATO can’t dictate where a tax payer funds their surplus income and it may be used to pay into a non deductible debt.
These facilities are not allowed by the ATO as the main aim is to achieve a tax benefit by capitalizing interest.
Yes you can as a pro rata of the space used for your business. However this will give rise to Capital Gains Tax on the family home at the same pro rata percentage claimed. It is advisable to consider this very carefully before proceeding as the initial tax benefit may be far outweighed by the CGT at time of sale.
The Banks usually consider debt to asset ratios and generally allow 80% ratios before considering loan mortgage insurance and higher interest rates. They will usually be more interested in debt servicing, i.e. income available to pay the debt after tax and all other costs are taken into account. In some cases 95% may be borrowed and the loan insurance fee added to the debt reducing the amount an investor needs to fund in cash.
The loan that is redrawn, if used to pay off a non deductible home loan is not deductible even if the net effect is that the deductible loan is higher. This is because it is what the loan is used for that makes it deductible.
In some cases the difference between these 2 scenarios is quite marked. The difference will be increased if there is depreciation included. In this case it is worth weighing up whether it is worth paying the difference just to live in your own home. This difference may have assisted paying off the loan a lot faster. The downside is that there will now be CGT on the investment property when sold unless the 6 year rule stands.
To diversify into alternative investments minimisises investment risk. Agribusiness could potentially have a healthy return at the end of its growing term. In addition the refund cheque can pay off non deductible debt on the home and at the same time then be used to assist in investing in other investments.
In the case where a life insurance payment is received in a Super fund due to the death of a policy owner, it is up to the trustee of the Super fund to decide who will receive the benefits. The actual Life insurance fee is deductible if the super contribution is deductible. It will of course depend on the tax payers tax rate as to the total benefit received. The life insurance payment forms part of the tax payers Reasonable Benefits Limit and as such may be taxed at the highest tax rate in some cases. With the abolition of RBLs there may be nil tax levied on life benefits but this has not been finalised .
If the building your practice is in has a debt and is owned by a unit trust and a self managed super fund is in existence then any cash contributions can be used to purchase units in the unit trust. If the practice pays rent to the Super fund eventually, as an income the rent is taxed concessionally whilst the rent is claimed at a full tax deduction by the practitioner.
Of late, industry funds have appeared in the media promoting lower fees and better performance than public funds. This is due to the new super choice and an opening in the market for investors to choose their own funds. Over 10 years it has not been definitively proven either way.
Opinions differ but it is usually accepted that fees will necessitate at least $150,000 being in a Super fund.
If you die without a will then there will be delays in distributing assets to family members as a court will need to elect an executor. In the meantime, life insurance and other assets are frozen.
There are two simple methods. Firstly, calculate an amount that would extinguish all debts leaving a lump sum large enough to generate an income to cover family costs. Secondly calculate the income required to service debts and pay for living costs and take out enough life cover to generate an income large enough to pay these costs.
Assets can be distributed after death through a trust with more control and income can be distributed in some cases tax effectively.
We provide timely and relevant advice to medical professionals to help you make informed decisions about your finances.
At MNM Group, our specialisation lies in providing dedicated Financial Planning services crafted exclusively for medical professionals. Because we truly understand the individual journey of doctors undertake while training in public hospitals or embarking on their specialised private practice.
At MNM Group our services are dedicated to assisting doctors, physicians and surgeons at every phase of their careers through our comprehensive tax, accounting and business advisory solutions.
We understand that as medical professionals, you have unique financial needs when it comes to buying a home, managing your finances, and obtaining funding for your practices. With our expertise in finance, mortgages, and banking, we can help you navigate the complex financial landscape and achieve financial success.
Our team of property investment experts can provide you with tailored advice on property investment strategies, including purchasing, leasing, and selling properties. We offer a range of services to help you manage your investment portfolio, including property management, rental income analysis, and capital gains tax planning.
Take control of your finances and secure your financial future. Contact MNM Group today to learn more about our comprehensive financial solutions.
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